AirAsia X selling ramp equipment to AirAsia Bhd arm for RM4.63m

PETALING JAYA: AirAsia X Bhd (AAX) is selling its ramp/ground equipment to AirAsia Bhd's (AAB) wholly owned subsidiary Ground Team Red Sdn Bhd (GTR) for RM4.63 million, in a related party deal.
AAX told Bursa Malaysia that it had entered into a sale and purchase agreement (SPA) with GTR for the sale and transfer of ramp/ground equipment and the transfer of employees.
AAX also inked novation agreements with TCR Solution Sdn Bhd and I Tech Engineering and Machinery Sdn Bhd to novate to GTR the lease & maintenance agreement, full service rental agreement and repair and maintenance contract.
AAX said the sale of ramp equipment and the novation agreements are to facilitate the establishment of GTR, through the integration of all AAB and AAX's ground equipment assets.
"This will be facilitated through GTR taking ownership of the ground equipment through the SPA, as well as via the novation agreements by AAX to GTR," it noted.
AAX will make a gain of RM225,972 from the ramp/ground equipment disposal.
GTR was formed with the purpose of providing efficient in house ground handling services with lower and reasonable rates and to generate income and tap external business potential from the handling of third party airlines in Malaysia.
AAX shares were unchanged at 38 sen, with some 3.98 million shares changing hands. It has a market capitalisation of RM1.6 billion.